Canadian Pizza Magazine

Features Business and Operations Marketing
Are You A Price-Trapper?


March 12, 2008
By Cam Wood

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I swear I live in the Wal-Mart of
the pizza industry. Up until about six months ago there was nothing but
chain pizzerias serving the community – a reserved choice between some
“quasi-mafia” monikered assembly-liner or a “jazzed-up” mediocre
“delto.” The arrival of an independent – born from the ashes of a
defunct “mom and pop” – was heralded by many.

I swear I live in the Wal-Mart of the pizza industry. Up until about six months ago there was nothing but chain pizzerias serving the community – a reserved choice between some “quasi-mafia” monikered assembly-liner or a “jazzed-up” mediocre “delto.” The arrival of an independent – born from the ashes of a defunct “mom and pop” – was heralded by many.

It was, to say the least, a welcome change to somewhat tiresome offerings that held firm in the microscopic market of a small town. That is until the signage and marketing material made the rounds.

This new arrival was quite obviously going to play price-point as their differentiation.

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And so it was for a few months – a battle of budget David against the franchise Goliaths using nickels instead of stones.

Recently, a new independent entered the battle, at first bringing hope to the foodservice industry that perhaps a new offering would invigorate the culinary palettes beyond $9.99.

But, sadly when brazen economics replaced the glorious “Opening Soon” roadside statement, it became evident that this market would be one of “price rollbacks” instead of pizza perfection.

I wonder how many other small markets reflect this mentality across Canada? Is this you? In times of record dairy and wheat prices, are you rolling back your prices to compete?
   


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